Savers who want to participate aren’t subject to caps on their MAGI, which is one major difference between Roth IRAs and Roth 401(k) plans.

Be sure to coordinate your Roth 401(k) and traditional 401(k) contributions: In total, you may save up to $19,000 in 2019, plus $6,000 if you’re 50 and over.

Two tests

You can withdraw your actual contribution from a Roth IRA at any time.

This isn’t the case with a Roth 401(k). If you try to make an early withdrawal, your distribution will contain a combination of contributions and taxable earnings, plus a 10 percent penalty.

You need to meet two tests in order to take tax-free distributions of earnings from your Roth accounts.

First, you must have held the account for at least five years.

Second, the distribution must be made after you’ve turned 59½. Withdrawals due to death or disability are also tax-free, as long as the account meets the five-year test.

Be aware that while your Roth IRA is exempt from required minimum distributions — the mandatory withdrawals you must take after you turn 70½ — your Roth 401(k) is still subject to RMDs, according to the IRS.